Texas Real Estate Blog & Market News

Before learning about Austin's property tax issues, let's see what property tax is? So here is the answer. The annual property tax is the amount paid by a landowner to the local government. In long-term expenditure, it is crucial to have a rational expectation of how much you might be paying to budget; accordingly, it is even more important if you are relocating. Taxes that are assessed and charged annually based on 100% of the market value of your home or property are known as property taxes, though the tax rate varies with location. The profit from property taxes is supposed to be used for maintaining the community infrastructure.   

We know that Austin comes under Texas, and the tax rates in Texas are among the highest in the country; it ranked 3rd among other states and 14th in median property tax. The Austin property tax rates are among the highest in Texas.  

What Is A Property Tax Appraisal?

The property tax appraisal is the tax bill that includes assessing the market value of your property. According to the Texas Comptroller's office, the state requires the taxable property to be appraised by January 1 of every year. A country's appraisal district determines the value and bases it on the Texas property tax code. Every year people in Austin protest for property tax reduction, file complaints and lawsuits for the same; let's see the details regarding these issues and the process involved.  

How To Appeal Texas Property Taxes Reduction  

The tax system in Texas is in crisis, and it is nothing new; every year, more than 90% of the Texians appeal, and approx. 65% of them do win. So, if you are done paying a part of your property taxes, you can fight for the reduction and protest. Now the next question is, how to protest property taxes and win? Answers to it can differ. If you don't have time for it, then there are many property tax protest companies that can handle all the paperwork for you, and your chances will be high.

If you want to handle this matter on your own, keep reading till the end to find out how to fight property taxes in Texas and the process it involves so that you can do it your own. 

• File An Appeal

You might be thinking about how to protest property taxes. Well, that is an easy process. First, you have to approach the provider of the appraisal district, who will give you a form, fill it and file it. You can also send a short notice or letter to the chief appraiser at the central appraisal district letting them know that you are protesting your property taxes. The deadline to protest property taxes in Texas is May 15. Thirty days after the notice of your assessed value is mailed to you. Better you should protest annually to minimize your property taxes. You might be wondering about the last day to protest property taxes in Texas. Here is the answer, according to the texas comptroller's office, the state requires taxable property to be appraised by January 1 every year.  

• Research The Central Appraisal District Record Card  

Every appraisal district has a record card for each property it assesses in the county. It contains information like plot size, building size, amenities, etc., in the record card. For a complete record, you need to go to the district office, and there may be a nominal charge; for further assistance, you can review the information provided on the appraisal district's website. If there are any errors in the record card, it could become your valid point to protest against it because sometimes it is impossible to keep the correct data when you tone records.     

• Establish Your Property Value

There are a few ways to establish your property value, like determining your market value when granting reductions in property tax assessments, a sales comparison approach, an income approach, and a cost approach. Do not forget to analyze your properties, both market value and unequal appraisal, while preparing for your Texas property tax appeal.  

• Legal Avenues 

The legal avenues first stage is the informal hearing. Typically, you will be notified after you file a protest. To attend the hearing the date and time will be provided; it will be conducted with the appraiser's staff at the appraisal district office; it doesn't take much time. The decision for further adjustment is taken in this meeting like either the adjustment can not be done, or you will be settled with establishing a lower assessment. Most residential property tax appeals got resolved in the informal hearing stage in Texas.   

The ARB stage is the formal hearing stage of the legal avenues, also called the appraisal review board hearing. The decision made here is non-negotiable, although you can still appeal in the texas district court by filing the lawsuit against the county appraisal district for further appeal regarding the property taxes.  

• Additional Expenses 

You might be thinking about the property tax protest cost; well, if you want to save up your money by not paying the property tax. Then this is not much as most companies are charge-free. According to the 1% scheme in which they will charge their fee only 1% of what your market value reduction will be. For example, if your property is reduced to $50,000, 1% of it is $500, they will be charging this much. Some companies also have the policy of no reduction-no fee means you don't need to pay if you get no reduction in your property tax.    

Why Is It Important To Protest Against The Property Tax?

• You have already read so much about the property tax appeal, protest, and its following processes for dealing with it. Let's see the reasons to protest property taxes and why it is reasonable:

• Think, what if you are paying more in taxes every year when your home is not worthy of that money to be spent paying the tax. By going through the ARB, they will understand the interior features of your house. You can mention the damages, repairs, broken appliances, faulty plumbing, and other non-working features. In short, you can mention everything inside your house that they can't look at from the outside, and that could be negotiable to lower taxes than what you are currently paying. 

• If just mentioning the interior can reduce your property value, then by doing the same, you can also raise your home's market value in case you're planning to sell it.

• There could be special tax deductions if you make updates about your home's features. You will get a reduction in your property taxes. You can get a better deal on the taxes you are paying, so it is worth mentioning. 

• There is nothing to lose as you are already paying the high taxes for the property tax, they won't increase it if you appeal, but anything is possible; that is, it may get reduced. So just make it an act in action and protest against the property taxes. 

 Conclusion:

After reading the above article, I hope you got all the necessary information regarding the property tax, appeal, making reading it, and many more. It is time-consuming, though, if you do it on your own, and you have to spend money if you hire somebody, but it is a better option than paying huge amounts of property taxes that you have to pay every year. So know your rights and do not spend your hard-earned money this easily due to faulty administration, which has less information.